Total backlog of approximately US$56 million positions Insituform
for growth in India’s rapidly expanding
infrastructure market
Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) has
won two new sewer rehabilitation contracts in Delhi, India, totaling
$21.1 million.
The work will be performed by Insituform Pipeline Rehabilitation Private
Limited, an Indian company and joint venture between Insituform
Technologies and Subhash Projects & Marketing Limited (SPML) (Bombay
Stock Exchange: SUBH). SPML is one of India's largest water, waste and
power infrastructure companies. The joint venture company combines the
technical expertise and globally acclaimed cured-in-place pipe (CIPP)
technologies of Insituform with the execution and marketing capabilities
of SPML.
As part of the plan to spend in excess of $1 billion to rehabilitate a
sewer system that serves a population of approximately 14 million
people, the Delhi Jal Board (DJB) issued letters of intent for the
contracts to Insituform's Indian joint venture on September 12, 2008.
Insituform is currently working with DJB on two existing projects valued
at $35.1 million that previously were awarded to Insituform.
“Insituform has and will continue to make
significant operational investments in India to safely and profitably
service both our $56 million in backlog as well as the many new projects
to be released by the DJB and other major Indian municipalities,”
said Daniel E. Cowan, Vice President, Strategic Business Initiatives for
Insituform. “Insituform is also actively
working to expand its product offerings in India so that we can
participate in a larger portion of each program.”
Combined, the new contracts involve rehabilitating 13,435 meters (8.35
miles) of medium- and large-diameter sewer lines with Insituform’s
cured-in-place pipe (CIPP), along with other trenchless and
non-trenchless work. CIPP is a jointless pipe-within-a-pipe used to
rehabilitate sewers with virtually no digging. The work will begin in
2009 and is scheduled to be completed within 24 months.
"The recent addition of substantial backlog in New Delhi is part of
Insituform’s long-term growth strategy for the
Asia-Pacific region,” said J. Joseph Burgess,
Insituform’s President and CEO. “Insituform
is committed to building a vertically integrated Asian operational
platform ready to service the nearly $2 billion of funded trenchless
projects over the next five years in India and meet the growing
trenchless needs of other Asia-Pacific countries.”
Insituform has completed its first large-diameter sewer rehabilitation
project in India for the New Delhi Municipal Council and has begun work
on two other DJB projects scheduled for completion in early 2010.
Insituform Technologies, Inc. is a leading worldwide provider of
proprietary technologies and services for rehabilitating sewer, water
and other underground piping systems without digging or disruption. More
information about the Company can be found on its Internet site at www.insituform.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. The company makes
forward-looking statements in this news release that represent the
company's beliefs or expectations about future events or financial
performance. These forward-looking statements are based on information
currently available to the company and on management's beliefs,
assumptions, estimates, and projections and are not guarantees of future
events or results. When used in this document, the words "anticipate," "
estimate," "believe," "plan," "intend," "may," "will," and similar
expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying such statements. Such statements
are subject to known and unknown risks, uncertainties and assumptions,
including those referred to in the "Risk Factors" section of the
company's Annual Report on Form 10-K for the year ended December 31,
2007, as filed with the Securities and Exchange Commission on March 10,
2008, and in our subsequent Quarterly Reports on Form 10-Q. In light of
these risks, uncertainties and assumptions, the forward-looking events
discussed may not occur. In addition, our actual results may vary
materially from those anticipated, estimated, suggested or projected.
Except as required by law, we do not assume a duty to update
forward-looking statements, whether as a result of new information,
future events or otherwise. Investors should, however, review additional
disclosures made by the company from time to time in its periodic
filings with the Securities and Exchange Commission. Please use caution
and do not place reliance on forward-looking statements. All
forward-looking statements made by the company in this news release are
qualified by these cautionary statements. Insituform®
and the Insituform® logo are the registered
trademarks of Insituform Technologies, Inc. and its affiliates.
Insituform Technologies, Inc.
David A. Martin, 636-530-8000
Vice
President and Chief Financial Officer
